The following document is intended to give the reader a quick overview of crime insurance. It is only a brief summary and does not fully explain the scope of coverage provided by crime insurance policies.
A future article will deal with some real life claim scenarios but first we have to understand the coverages before we try to figure out where a loss is covered.
Hopefully this article will give the average consumer more insight into crime insurance.
Common Crime Insurance Coverages
Premises Coverage – Pays for the loss of money or securities from the premises resulting from theft , including robbery, by a third party of such property.
Transit Coverage – Pays for the loss of money or securities resulting from the theft or robbery by a third party while the money or securities is in transit or away from the premises.
Money Order and Counterfeit Currency – Pays for a loss resulting from having accepted in exchange for merchandise, money or services: money orders that are not paid upon presentation or counterfeit currency.
Employee Theft – Pays for the loss of money, securities and other property resulting from theft or forgery committed by an employee
ERISA – Pays for the loss of money, securities and other property from an employee benefit plan resulting from fraudulent or dishonest acts committed by a Fiduciary of the plan.
Clients’ Property – Pays for the loss of money, securities and other property from your client resulting from theft and/or forgery committed by your employee.
Forgery or Alteration – Pays for a loss resulting from forgery or alteration of a financial instrument committed by a third party. The instruments could either be drawn upon or made by the insured.
Credit Card Fraud – Pays for a loss resulting from forgery or alteration of any written instrument in connection to a credit card issued to an insured or any partner, officer or employee of an insured organization.
Computer Fraud – Pays for the loss of money, securities or other property resulting from the use of any computer to fraudulently cause a transfer of the property from inside the premises or banking premises to a person or place outside the premises or banking premises.
Funds Transfer Fraud – Pays for the loss of money and securities resulting from a fraudulent instruction directing a financial institution to transfer, pay or deliver money or securities from your account.
Social Engineering Fraud / Cyber Deception Fraud – Pays for the loss of money or securities resulting from the insured having transferred, paid or delivered money or securities to a third party because they were misled to do so because of intentional misleading or deception of an Employee, through social engineering, pretexting, phishing, or any other confidence trick communicated by email, text, instant message, telephone or other electronic means by a third party.